The central objective of this paper is to enquire into the interrelationship between the government and business and how it affects the initial decline, subsequent growth and apparent 'resurgence' of manufacturing industries in the state of West Bengal; and how and whether such policies can reconcile the interests of capital, and the requirements of growth, without ignoring the pro-poor commitment of the government. It concentrates on the institutional dynamics which paved the way for such transitions. Following an introduction the paper considers a conceptual framework to understand the Theory of Institutions; identifies research questions and methodology; presents (1) a bird's eye view of the economy and politics in West Bengal, and (2) a phase-by-phase analysis of the interaction of institutions and organizations in shaping manufacturing activity in West Bengal (Phase I (Period: 1965-1977) The Economics of Control and the Politics of Entitlement; Phase II (Period: 1977-1991) The Era of Economic Uncertainty and Political Stability; Phase III (period: 1991-2005) The Economics and Politics of Reform); evaluates the impact on poverty on the manufacturing sector's dynamics in West Bengal; and ends with conclusions and the way forward.
Read the id21 Research Highlight: Politics, state governance and manufacturing in West Bengal
IPPG Discussion Paper Series Number Ten, DFID, London, UK, 17 pp.